00:00:00.000Colonel Ken Paxton said he's going to stop negative ads on television.
00:00:04.100His PAC has vowed to do the same thing.
00:00:06.480Will you do that, or how do you feel about him saying he's going to do that at this stage in the race when it's not over?
00:00:11.140You know, judgment day is coming for Ken Paxton, maybe in more ways than one.
00:00:18.360But the election on May the 26th is the first time he will actually have been held accountable for all of his misdeeds.
00:00:26.560He lied to his senior staff who turned him in to the FBI because he was interfering with a federal investigation of his campaign treasurers.
00:00:37.600When he fired them, they became whistleblowers, sued him, and got a $6.6 million judgment against the state of Texas.
00:02:30.000The message is getting through, but it's the wrong demographic.0.95
00:02:34.620But, no, this is going to be, we're running through the tape, and we're here to ask for every vote that we can get.
00:02:44.220And I think that will be justice for Ken Paxton.
00:02:48.800But if Ken Paxton, with the incredible baggage that he brings into this election, were to somehow end up being the nominee, he could well lose that race to James Tallarico.
00:03:03.280We haven't elected a Democrat statewide in Texas since 1994.
00:03:10.040for. You know what that would mean? Not only for our state, but President Trump's agenda.
00:03:16.380Because the money that would have to be spent here in Texas to salvage a flawed candidate like
00:03:24.140Ken Paxton has to come from somewhere. And where it would likely come from is other key Senate
00:03:29.920races around the country, like Georgia, North Carolina, Michigan, New Hampshire. It would
00:03:36.160be hundreds of millions of dollars. And there's still a good chance that he would lose. But even
00:03:42.900if he somehow, by some strange occurrence, happened to become the nominee, he will not be
00:03:52.180winning by the kinds of margins that would be necessary to help down ballot. And so just to
00:03:57.960be specific about that, that means the five new congressional seats that President Trump
00:04:02.940one in Texas to draw which we did draw those will all be right below the Senate
00:04:08.100race on the ballot and then you get to the state races and then you get to all
00:04:13.200the other statewide races Ken Paxton would be an albatross around the neck
00:04:19.500of the Republican ticket in November if I didn't believe that I wouldn't
00:04:26.520literally be running today but I'm proud of what we've accomplished in our state
00:04:32.000i know it's worth fighting for and that's why we're fighting to win this election yeah you're
00:04:41.800fighting you're fighting judgment day is coming for for um uh for cornyn and la savita 150 million
00:04:50.240dollars which the ads have gotten uglier and nastier and there's a poll out caroline wren's
00:04:55.980going to join me here friday 22 may euroville 2026 kicking off our memorial day coverage got an
00:05:01.220amazing special tomorrow i'll tell you more about it uh and then obviously we're live on um monday
00:05:08.100again with uh four hours of coverage from 10 a.m to 2 p.m on all the commemoration
00:05:12.980by president trump and an irlington national cemetery and all of it um caroline wren uh
00:05:20.300judgment day is coming i believe in accountability what cornyn said the president of these united
00:05:25.920States just put up on True Social, pass the Save America Act. He's obsessed with it because he
00:05:32.060understands how important it is for the country. Connect the dots there. You actually came up with
00:05:37.260the strategy. You gave Cornyn a path to victory. All Cornyn had to do was to work with Thune
00:05:46.140and pass the Save America Act. And unprecedented in American history, Ken Paxton, being the patriot
00:05:53.100that he is, understanding how important this is for the president's agenda, how important it is
00:05:58.800for MAGA, he offered himself up. No politician in the history of the country has said, hey,
00:06:04.060if my opponent will do his job, just do his job and work with the president of the United States,
00:06:09.860I will step down after spending, I don't know, 20 or 30 years as attorney general in other positions
00:06:15.200that he would basically give up his political career. And he's worked so hard the last three
00:06:20.160or four years to be U.S. senator. It's never happened before. That's what got people's
00:06:24.660attention on a national basis. And and obviously locally, the grassroots in the war room know
00:06:29.860what a the servant's heart is what Ken Paxson has. Tell me about John Cornyn, because John
00:06:37.120Cornyn has just told you he's going to go out ugly. There's a new poll out that buries
00:06:41.840John Cornyn. But I wanted to have him in all his glory again with accountability that,
00:06:46.160you know, judgment days and coming. I believe in accountability. You're going to be held
00:06:49.460accountable, Cornyn. You're going to be humiliated on Tuesday. Lassovita, your entire team are going
00:06:54.880to be humiliated, spending $150 million to destroy the grassroots effort in Texas. Let's understand
00:07:00.540what happened here. And Ken Pax and Caroline Wren, thoughts and observations. Yes, I mean,
00:07:06.900President Trump is obsessed with passing the Save America Act because he ran on it. He ran on
00:07:12.400securing our elections and not allowing illegals to vote and closing our border. We were able to0.99
00:07:17.900close the border, but the rest, a major part of his agenda is in the Save America Act, which the
00:07:23.440Senate is refusing to pass. And so he's going to keep hammering on this. He won the popular vote
00:07:28.960running on this. Hang on, hang on, hang on, stop, hang on, stop. Slow down, slow down, slow down.
00:07:33.920I want to make sure people understand that. It's not that they refuse to pass it. They're not
00:07:38.820working on it. We covered the whole thing with Mike Lee, the brave Mike Lee, Eric Schmidt.
00:07:43.180That was all performative. They tried their best. Nobody in the Senate backed them up.
00:07:47.880That was all performative for two weeks. It's not the Senate's not passing it, Caroline.
00:07:53.260Cornyn and these guys refused to work on it, and they just put it up in President Trump's grill.
00:07:58.920We're just going to go home and go on another holiday and maybe take a Codel because we're too busy.
00:08:04.460We're so far from passing that. And President Trump, some free advice from the war room.
00:08:10.420I love the tweet. I love the true social. I love it. But, hey, that process starts with removing John Thune.
00:08:18.620Your grassroots base, the MAGA base, is turfing out John Cornyn on Tuesday.
00:08:26.840If you now take that and turf out John Thune, now there's no other way.
00:08:31.360Caroline, help me out here. Is there any other way than the removal of the leader of the United States Senate, ma'am?
00:08:37.780no because the only way to pass the save america act is to nuke the filibuster because you're never
00:08:44.700going to get 60 votes because the democrats cannot vote yes for this even though they know
00:08:49.040it's common sense uh but they will never win an election again if the save america act passes so
00:08:54.260you're not going to get any democrats to vote for it and then look the democrats that are refusing
00:08:58.480or the republicans refusing to pass this are the ones that are on their way out look at senator
00:09:03.120mcconnell senator cassidy senator tillis and now you know what this is amazing about what cornyn
00:09:08.600is showing his true colors this is what we were talking about for the last six weeks on this show
00:09:12.480as to why cornyn could not have another six years is because it is dangerous to have these senators
00:09:17.820that we know hate the trump agenda hate maga to be in the senate without having to knowing they're
00:09:24.180not going to run for re-election again because cornyn there was no way he was going to run for
00:09:27.380another term after this he is too old so right now he is proving to us exactly what he told we
00:09:32.100we're warning you guys about. We need new blood and people that actually support Trump's agenda.
00:09:37.260And because these guys on their way out, they love to love to just obstruct what this country
00:09:42.420wants and what President Trump wants. And they want the Save America Act passed. They want free
00:09:47.820and fair elections, and they do not want illegal aliens voting in their elections. It is that1.00
00:09:52.520simple. And you have to nuke the filibuster. And John Thune is unwilling to do it. And we would
00:09:58.460have to have 51 votes but right there you've got mcconnell tillis uh now i'm sure cornyn said he
00:10:03.880would do it now he's definitely not going to and so this is the box that we're in but i i hope
00:10:07.960president trump he shouldn't cave on any of this and he should keep pushing them on it when you
00:10:12.980came up with this structure and ken paxton hit the bid right away and really took ownership of it
00:10:17.320embraced it uh cornyn here's the thing cornyn didn't really lift a finger he actually had a
00:10:23.500path to remain in the Senate. But Caroline, you know how they work. They were never going to pass0.98
00:10:29.580that. Why are they not going to pass it? Because it empowers the grassroots in this country. And
00:10:34.200remember, they're all about, they are, the Senate is the institution in which the ruling class of
00:10:39.760this country controls. It's the legislative branch that the biggest donors control. That's
00:10:47.560why Cornyn had a path to save himself. Let's put that poll up again. He's going to be humiliated
00:16:34.340We're going to get to South Carolina in a minute.
00:16:35.840Caroline, Joe Allen's going to join me on the EO of the Executive Order on Artificial Intelligence.
00:16:41.860Bowling and Rickards are going to be here.
00:16:43.680Talk about the economy, particularly interest rates tied to the war.
00:16:46.720They've come back to us with a response.
00:16:48.880President Trump's not going to be happy, but progress is they're trying to grind through.
00:16:52.880And we're going to go to the East Room for the swearing end of the chairman of the Federal Reserve.
00:16:58.340Caroline, let's go back to the Save America, because that's what the grassroots is focused on, because they understand how important it is.
00:17:04.360Also, correct me if I'm wrong, doesn't because because of the restrictions on illegals being counted and voting,
00:17:12.780that it actually puts Nevada and New Mexico really in place so we can pick up two new states.
00:17:18.220What is your when you talk to the president, what is your logic here of how we're actually going to get this done?
00:17:23.540How are we actually going to get passed?0.51
00:17:26.100If illegals truly can't vote and you rein in mail-in ballots, then I'm not sure what state the Democrats could win.0.87
00:17:33.380Like maybe you could still win Oregon, Washington state.0.91
00:17:37.400I'm not even sure they could win California if you really clean up our elections.
00:17:40.380That is why the Save America Act is so lethal and why it has to get done.
00:17:44.740But there's no way to get it done without getting rid of the filibuster.
00:17:48.680And I think we should talk about the filibuster for a minute.
00:17:50.960The filibuster is not something that was in our Constitution.
00:17:53.660There was nothing in the Constitution about having to have 60 votes in the Senate to pass a bill.
00:17:58.660This was something that was added in later.
00:18:00.200And the biggest benefit of the filibuster and the 60-vote threshold is K Street, the lobbyists and the corporations.0.62
00:18:07.420Because it forces the senators to have to horse trade with each other and horse trade across the aisle.
00:18:12.500It is those lobbyists that do the wheeling and dealing and trading on different votes.
00:18:16.420Fine, I'll cross over and vote for this for you, but I want my funding for X.
00:18:20.160The lobbyists are the ones who facilitate all that.
00:18:22.440Not to mention, if you only have to have a simple majority to pass a bill, then it is
00:18:26.640very dangerous for major corporations, major insurance corporations, major pharmaceutical
00:18:37.600We have 51 votes to shut down the activity that you're doing.
00:18:41.080And you can keep, you know, plug and play with different industries on this.
00:18:44.540And it was the corporations and lobbyists that put in this 60 vote threshold and that have stopped us from are the ones who are the most opposed to lifting the filibuster.
00:18:55.200Now, those are the same corporations that fund, you know, the Senate leadership fund on the Republican side, also on the Democrat side.
00:19:02.240Now, the Democrats just had such a revolt against the filibuster last term that they had enough speak out that it's gone for them.
00:19:08.720Like they they they have said when they come back in, I'm sure I'm quite certain almost every single Democrat senator on record has said the filibuster is gone.
00:19:16.340We take over the Senate again and we're going to pass at a 51 majority.
00:19:19.820So it's now the Republicans who are refusing to.
00:19:22.360And they're acting like Trump is asking them to do this impossible thing.
00:19:26.620No, President Trump is asking you to do what the entire Democrat caucus has already publicly said they're going to do, which is pass bills at a 51 vote threshold.
00:19:35.300isn't a thune sending people home is going to be about uh leadership i mean there's been a revolt
00:19:44.380they have treated president trump like a lame duck the senate has not been in recess formally
00:19:51.820one day while president trump's been president in his first term or his second term they treat now
00:19:57.600they treat him on every aspect every part of the trump agenda that doesn't totally fall into what
00:20:01.880their donors want, they block. So we're in it. We're in a conundrum right now. They don't have
00:20:08.42060. They don't have 51. Right. So what then are we to do, Caroline Wren? We need to win these
00:20:15.120Senate races and then we will certainly have 51. Think about it. I mean, Andy Barr is going to
00:20:18.660replace Mitch McConnell. Boom. There you go. That was one of the no votes. Tom Tillis is gone. We've
00:20:23.500got to get Michael Watley and boom. There's a replacement to that. Bill Cassidy's gone. Julia
00:20:27.560Letlow has said she will nuke the filibuster. There you go. That's the pathway. We have to
00:20:31.980lean in so hard to win these Senate seats, to remain in the majority, and then replace the
00:20:37.700ones that are against this, which were, you know, Cornyn now says that he would vote to,
00:20:43.380or say, yes, I'm okay with nuking the filibuster, but please, can Paxton will be an actual leader
00:20:47.420on this? And if we make this a referendum on the election, which it is, this is what President
00:20:51.920Trump leaning in on these primaries and defeating these people overwhelmingly, that is the referendum
00:20:56.280on nuking the filibuster. So I think it can happen as soon as we if we can just retain this
00:21:02.060majority after November, then I think the filibuster could be gone. And we win these
00:21:07.940seats. And you believe by winning these seats, that convinces Thune we are supplicants to John
00:21:12.760Thune, that the grassroots movement, the MAGA movement and President Trump go as a supplicant
00:21:16.960to John Thune and say, pretty please, we delivered all this for you, that you worked against us,
00:21:21.620particularly against Cornyn and all these other situation, Cassidy, all these other situations.
00:21:26.280but we delivered for you and continued your brand leadership,
00:21:29.740will you pretty please pass the Save America Act?
00:21:33.100If that's a plan, okay, I'm down for it.
00:21:34.800That sounds like at least President Trump loves optionality.
00:21:38.980That's an option, but is that the option?
00:21:40.620You're saying right now in May of 2026,
00:21:43.300our best option is to wait until 5 January of 2027
00:21:48.340when we've swept the Senate and we hold still a couple of seat majority
00:21:53.780and we deal with John Thune as leader.
00:21:56.280Yeah, I'm not saying it's the best option. I'm saying it's the only option. There are not the votes to lift the filibuster right now. And so we can blame Thune or not. But like the no votes are quite obvious. And they are Tom Tillis and they are Bill Cassidy and they're Mitch McConnell and they are Lisa Murkowski. And then, yes, Susan Collins, we already fought about that.
00:22:15.260And so those are the no votes, whether or not it doesn't matter if our majority leader is Barrasso or Mike Lee or Rand Paul or there's not.
00:22:25.000We don't have the votes that is, you know, so that I don't want to rail too much on Thune.
00:22:30.320Problem is, Thune may be that we don't exactly know.
00:22:34.520He is just saying these are the no votes.
00:22:36.720So my point is that we need to three of those people are already definitely going to be gone and we're going to have Republican replacements.
00:22:43.180And then we need to hold some of these other seats, i.e. Susan Collins.
00:22:46.940And then I do think that in January we can and that you have two years then to really ram through Trump's agenda.
00:22:53.720OK, good. Let's go to South Carolina quickly. Your bomber command.
00:22:57.960Obviously, it's a very sophisticated crowd in the South Carolina Senate, right?0.76
00:23:02.120They know how to roll and they don't like a lot of I take it they don't like a lot of outside recommendations of how they should how they should react to things, ma'am.
00:23:13.180Well, the posse has been very successful in putting pressure on them. So we are moving forward right now. I mean, it was dead on arrival a couple of weeks ago. And so right now there's going to be a major procedural vote that takes place around midday today that will be to suspend the rules of the state Senate debate around the redistricting bill. And it's a major kind of test vote for passage. And this will tell all the other senators like how hard to fight for this or not. And if it passes, then we're off to the races.
00:23:39.100We need 31 votes for passage. I think we have about 38 Republicans. We do not. I'm not sure if we have those 31 votes. That's what we're going to see in this test vote.
00:23:48.440You know, they some of them feel invincible because they're not up for another two years.
00:23:51.940I made the point I was speaking to some state senators yesterday and said, well, Bill Cassidy voted to impeach the president five and a half years ago.
00:23:58.700And the voters did not forget. And Donald Trump did not forget. So just that you're up in two years, you're doomed.
00:24:04.060So if it does fail, or if that vote does fail today, though, we're not dead.
00:24:09.080It just means that we still have to see it through the entire timeline, and we're up against this timeline of early voting starting next week.
00:24:17.880And so right now, you know, there are different procedural plays.
00:24:21.040I can tell you the White House is all over this.
00:26:45.280As we were speaking about it yesterday, the president was influenced by those who have the biggest vested interest in making sure these guys never really have any government oversight, that they're self-regulated.
00:26:57.440You know, the staff worked very hard on this.
00:31:49.800But the entire push of the AI industry is not towards national security.
00:31:55.660The push is to flood the culture with as many bots as they possibly can.
00:32:00.900You can see already that AI slop now accounts for over half of the content being produced online.
00:32:08.460You can see from academia to corporate life, and even I hear in government agencies, the process of people becoming over-reliant on the AIs.
00:32:21.100They lose their own cognitive abilities.
00:32:23.560And pretty much this cyborgization of society seems to be the goal of these companies.
00:32:29.540People, human beings become vessels for their algorithms.0.79
00:32:33.360If that is what we're competing against China for, well, I guess we're succeeding.0.76
00:32:37.460But the real question is, long term, if Americans become these atrophied cyborgs without even the benefit of the superpowers that Elon Musk is promising, then I'm not really sure how it is that long term America remains competitive against China or any other country unless they all go full on ant farm, too.0.55
00:32:57.500So, yeah, the China argument doesn't make sense on that front.0.55
00:33:00.760What are we actually trying to become by competing against China?
00:33:03.720And it also doesn't make sense, given that most or all of these guys that are pushing for this competition against China are also doing everything possible to bolster China and make sure that China remains competitive.
00:34:46.500There's going to be this over the weekend.
00:34:48.800We're going to get together with everybody to sign the letter to kind of regroup.
00:34:52.440What are your thoughts? You're one of the you're one of the intellectual leaders of this movement.
00:34:56.060What are your thoughts? I mean, show you the desperate shape.
00:34:59.380What I see going forward, Steve, we as we've discussed so many times, they've got the money.
00:35:05.060We've got the people, the people across the board is bipartisan.
00:35:08.680And it's not it's not just Republicans and it's not just us stimulating it organically.
00:35:15.000The American population is they want to see the power of these companies reduced.
00:35:20.920They want to see some degree of oversight, just at least up to the level of automobiles, airplanes, sandwiches, these sorts of things, medicines, these sorts of things.
00:35:32.900And I think that, yeah, the EO is a step in the right direction, but it's a very, very, very small step because it addresses cybersecurity.
00:35:41.980And that's really important. And it addresses cybersecurity primarily on behalf of financial institutions.
00:35:46.940But you have to have, I think, going forward, this will be one step.
00:35:51.660You will have to have child safety. You will have to have everything else to do with the kind of AI psychosis.
00:35:57.420This is the emergency we've been talking about about these. Hang on for a second. I need to keep you around. We've got CNN polling, all of that. You just stick right here. Joe Allen's going to stick with us. We're going to get much more into this. We've got to go to the White House for the for the swearing in ceremony for the Federal Reserve chair. I've got two of our brightest bowling.
00:36:16.420First off, you and Jim Rickards, before we get to before we get to the Fed chair and the buzzsaw that Warsh is walking into, talk to me overnight.
00:36:26.100Where do we stand? Where do we stand with markets, the deal?
00:36:28.360Because you see and I think Zero Hedge had a great outline of the 10 points that are being discussed between the Arabs and the Persians right now.
00:36:38.560And people are saying, hey, behind the scenes that we're working towards something.
00:36:41.220And I'm not so sure President Trump's going to be that thrilled with what he's seeing in those points.
00:36:45.520And particularly, they go out of their way to say there's no comment at all on the nuclear weapons situation.
00:36:52.020In fact, they're saying that they're going to keep the Ayatollah saying they're going to keep the pixie dust.
00:36:57.500Your thoughts are where we stand with the war and the deal.
00:37:00.600So interesting three day weekend coming up.
00:37:26.140I would suggest probably not because, Steve, a long time ago, CPAC,
00:37:31.080I was filling, you were talking on the big stage on CPAC.
00:37:34.840I was co-hosting the war room with Maureen,1.00
00:37:37.260and I suggested the Iranian, 91 million people, Iranian people step up and start to push back
00:37:43.940against the IRGC. I got eviscerated by the crowd and your audience saying, oh, you can't tell them
00:37:49.000to walk into death. I said, well, if they truly want change, that's the only thing that's going
00:37:53.140to make change. It's not going to be bombs. It's not going to be sinking their ships or bombs
00:37:56.700falling on their land. And so if that doesn't happen, so you can't attack a Muslim country
00:38:04.340during the Hajj. You would have to wait till after, which means the oil industry is looking0.98
00:38:08.300at higher oil prices for another five, six days, which also taxed another probably week or so or
00:38:13.560two onto the backside when oil does come down. Trump has been saying oil will come down. He's
00:38:18.460right. He's also been saying gas will come down. I'm not going to say he's not right. I'm going to
00:38:23.260say he's being overly optimistic because it's not coming down for months. Interest rates have
00:38:28.240elevated greatly since Trump left Beijing, Xi Jinping, without a deal on the blockade.
00:38:33.960We're seeing the 30-year, all-important 30-year, 605, which is very high, and the 10-year,
00:38:41.860which you have pointed out several times, that's where most people are paying on their credit
00:38:45.340cards, 4.6 still above that all-important 4.5.
00:38:51.200You want that below 4, you like it near 4, it's at 4.6.
00:38:54.800A lot of the indicators are going to tell me that Warsh, and some of the things he said on CNBC leading up to his confirmation, was that he believes the Fed is the only thing that can tame inflation.
00:39:08.740Not outside forces, not supply, not demand, the Fed monetary policy.
00:39:13.120So I don't know how he can do anything but hold.
00:39:17.860He's probably going to hold for the foreseeable future.
00:39:21.000I mean, there's no chance he can cut rates.
00:39:23.980And that's what Trump wanted. He wanted a rate cut out of Powell. But here's the good news is if it were Powell, we would have seen several rate cuts going forward if it were still Powell. So we're saving a little bit, but not to the point where it's actually a rate cut.
00:39:35.980Hold on, you'd see rate increases. You wouldn't see rate cuts under Powell going forward.
00:39:41.840I said, yeah. So if we were Powell, we would see several rate increases. I say several rate increases under Powell going forward.
00:39:48.120No, no, you said cuts. But you're saying you don't think Walsh raises rates?
00:39:53.980I think he's going to, yeah, I think he's going to make a case for holding, you know,
00:40:00.380and especially saying inflation will tame when energy prices come down and energy prices will0.69
00:40:06.060come down as soon as there's some sort of deal coming out of the Middle East.
00:40:10.180Well, you've seen that. You've seen the proposal. You've seen what they're working on.
00:40:14.020Those 10 elements to it, President Trump's not going to be happy with half of it. He's not going
00:40:17.680to accept half of them. He's not going to be happy with the rest. I don't think he's going to be happy
00:41:31.780Now the deal for me would be stay with this blockade, even hit them in these power plants, in their roads, in their highways, make the Iranian people rise up against it.0.72
00:41:43.920I truly believe at this point, in order to get any sort of movement, regime change movement, if that's what the goal is, remember, it wasn't always a goal, but if that's the goal, it's going to have to come from pressure, obviously pressure outside from us, but pressure inside from the people.0.73
00:41:59.160I don't think the president, I don't think the president, I don't think, I don't think regime change, the only place regime change is on the table is in Tel Aviv.
00:42:06.680And I think they've even given up on that. I don't see regime change.
00:42:09.840So let me ask you that. What is President Trump?
00:42:12.520They're negotiating, hold on, they're negotiating with the regime change, Steve.
00:42:16.140What is it? We've obliterated their nuclear capacity. We heard about that in the 12-day war last year.
00:42:22.480We've, you know, we have no interest in the Strait of Hormuz other than helping Europe, Asia and India at this point, China and India.0.54
00:42:29.160I got you, but I'm just saying technically, regime change wouldn't have been the 10.
00:42:34.560The folks that sent that 10 points, they think they're winning.
00:42:39.540That's something you send somebody when you think that they're winning.
00:42:43.060That's why this has got to be, you know, President Trump.
00:42:45.520Any day you fight back the great Satan and survive is a win for them.
00:42:51.340It's perceived as a fanatical win for them.
00:42:56.820So, of course, they think they're winning.
00:42:58.140But when the people can't get water or the people can't get from here to the next town over or they can't get out on an airplane because we hit their airports as well, airports, roads, final thought would be the desalization plans.
00:43:14.720That neocon, you don't have to scratch too far in the surface for that neocon to come out and go bomb again.
00:45:51.560Then Bernanke, it starts coming down all the way to 4.5%, what Warsh is doing.
00:45:59.380What is your, just before we see, and by the way, I think it's been pushed back to 11.15.
00:46:05.160This is one of the biggest appointments in President Trump, because this guy's going to be with us for, what, eight years?
00:46:12.380This is one of the biggest, most important appointments outside the Supreme Court that the president will do.
00:46:17.020Your thoughts on this day, sir, about Kevin Warsh, where we are in the bond market, where we are as a highly leveraged $300 trillion worldwide looking for a margin call.
00:46:33.100Yeah, we're on a perpetual margin call, so to speak, because we're approaching $30 trillion in debt.
00:46:39.740We have to finance that, and we use those folks.
00:46:42.000So that's why interest rates are so important, certainly to the household, because individual interest rates go up to 10-year, tied to your credit card, 30-year, tied to your mortgage.
00:46:51.780But it's also the rates that we're having to pay other countries to finance our overspending.
00:46:58.600So super important, even a tenth of a percentage point is massive in dollar amounts, raw figures.
00:47:04.360Warsh, I believe, is a great appointment.
00:47:07.880It's a great appointment because he sees the future.
00:47:10.340He understands that monetary policy can move and will move, is the real only movement input to interest rates.
00:47:18.720But it also tells me his hands are going to be tied to a certain extent.
00:47:23.700He, Trump brought him in because Trump thought Jerome Powell should have lowered interest rates leading up prior to the war.
00:47:30.880The war conflict changed the game completely, but prior to it, and Jerome Powell should have.
00:48:02.900And I think Warsh will fight and push back against Powell and against Waller and some of the other Fed, let's call them folks that want to get in front of the inflation because they got burned by not doing it with Biden.
00:48:16.720Biden's was fully, it wasn't just energy with Biden.
00:48:42.500But the theory of the case when President Trump came in with Besson, I mean, Besson had a plan.
00:48:48.280The plan was to get the you had the opportunity to get one more supply side tax cut.
00:48:53.860That would be it. That was a big, beautiful bill with your tariffs and your tax cut focused on capital expenditure.
00:49:00.300You had an opportunity to bring manufacturing jobs back to the United States and you were going to grow your way out of it.
00:49:07.860That's very tough to do, but you're going to grow your way out of it.
00:49:10.340that has all kind of been jammed up by this Iran war and not just the Iran war, but also the
00:49:17.840highly leveraged, because the business model of the country right now, people should understand
00:49:20.960this, we're a highly leveraged bet on AI, having productivity, massive productivity,
00:49:29.120earth shattering productivity increases. When I say productivity increases, you should assume
00:49:35.600That means massive job cuts, no career opportunities for young people coming out of STEM colleges or with STEM, very limited opportunities for them, and virtually no opportunities for the poor Schmendricks that are 40 years to 55, 60 years old that are STEM workers who are going to get rid of them first.1.00
00:50:04.320So you're between a rock and a hard place right now, sir, even with settling in this war and going back to full-spectrum energy dominance or trying to get back to full-spectrum energy dominance.
00:50:15.060You've got this guy's coming in today with a long, hot summer in front of us and big headwinds on this economy.
00:50:25.180Big headwinds on the economy because big headwinds with inflation is going to continue to rise again, even if all clear as sounded tomorrow.
00:50:32.160And you're right, Steve, the leverage bet. We're wildly leveraged. But guess what? Money isn't philanthropic. Money doesn't care about your politics. Money just seeks to grow money. That's the nature of the beast.
00:50:45.800So, yes, AI, we're leveraging, and we're leveraging into what I believe will be the second industrial revolution in the AI world.